Investor Presentation

with 9M’19 Financials

1

Executive summary

Turkey’s growth recovers while the potential remains solid

• The Turkish economy presents a strong opportunity among emerging markets due to its large size and highly attractive demographic profile,

which is resilient to the transient fluctuations in the economic activity;

• On the back of the recent improvements in the price dynamics, declining inflation expectations and supportive external conditions, the CBRT

cut the policy rate by 10% in total to 14.0% in the three MPC meetings in July-October period; and

• GDP grew by 1.2% quarter-on-quarter in 2Q, expanding for the second consecutive quarter. The economic data implies resilient economic

activity in 3Q despite relatively tight financial conditions. With recent front-loaded easing in the financial conditions, incipient recovery is to

gain momentum in the Q4.

One of the Top Performing Banks in the Market

• QNB Finansbank is one of the strongest players in the market ranked 5th across most categories amongst privately owned banks;

• QNB Finansbank has a very strong distribution network balanced between a branch footprint covering 99% of banking business in the market

and best in market digital offerings; and

• QNB Finansbank has shown strong financial performance, beyond its scale, even in the most volatile market conditions, driven by

differentiation, adaptability and bringing the right people together.

Strong Shareholder Supports QNB Finansbank for Future Growth

• QNB stands out as the strongest rated main shareholder among Private Turkish Banks;

• QNB is the largest bank in the Middle East and Africa by all critical measures and has the highest ratings among all banks with a presence in

Turkey;

• QNB’s presence across a wide geography overlaps well with Turkey’s key foreign trade partners, bringing opportunities in this area;

• QNB Finansbank’s launch of its new brand has been very successful, and is translating to successful expansion of its customer franchise in

potential growth areas; and

• Following the QNB acquisition, QNB Finansbank has added a new growth chapter in its successful history, capturing Corporate and

Commercial Banking market share, while sustaining its success in Retail and SME Banking.

2

Contents

QNB Finansbank and QNB Group at a Glance

Loan-based Balance Sheet Delivering High Quality Earnings

Solid Financial Performance

Appendix

2

3

4

5

Macro-economic Overview1

Macro-economic Overview

4

Structurally attractive Turkish economy

(1) QNB Finansbank projection

Source: IMF WEO-Apr'19, Turkstat, Treasury, CBRT, CIA World Factbook

GDP

2018, USD, bn

# GDP per capita

(USD, k)

766 586 368

BR PLEUZ RU TR SA

13.669

1.8681.631

GDP Growth average 2010-2018

%

Population by Age Groups

% (2018 estimates CIA World Factbook)

1415

8

28 6

10

717 42SA

9

9431624TR

99

55-64

441622BR

15

PL 18

154417RU

43

65+25-5415-240-14

39.9 9.0 11.3 9.3 15.4 6.46.4

3.5

2.0 1.91.4 1.4

RUTR SA EUZPL BR

Fiscal Deficit / GDP

2018, %

Gross Public Debt / GDP

2018, %

Current Account Deficit / GDP

%

2.8

-0.6 -0.6-2.0

-4.4

-6.8

RU TRPL EU SA BR

6.7

4.73.7 3.8

5.6

3.5

2015 20162013 2014 2017 2018

0.0(1)

2019E

14.0

30.4

48.456.7

85.0 87.9

BREUZRU SATR PL

Large economy with low GDP / capita… …and highly attractive demographic profile … generating high real GDP growth

Low fiscal deficit… … and improving external deficit… … with low public debt

PL: Poland

RU: Russia

TR: Turkey

EUZ: Eurozone

SA: South Africa

BR: Brazil

5

Sound banking system with inherent growth potential

(1) Latest data Q1’19 for EUZ (for significant institutions as designated by ECB); Q4’18 for SA and BR; and Q3’18 for RU and PL(2) Latest data Q1’19 for EUZ (for significant institutions as designated by ECB), PL and BR; Q4’18 for SA and RU(3) Latest data Q2’19 for TR; Q1’19 for BR and PL; Q4’18 for SA and RU

Source:Thomson Reuters - Data Stream, ECB, BRSA, Turkstat

Leverage ratio(1)

Q2’19, x

Banking Sector Pre-tax RoA(3)

2010-2019 average, %

NPL ratio(2)

Q2’19, %

Deposits / GDP

Q2’19, %

Household debt / GDP

Q2’19, %

Loans / GDP

Q2’19, %

49.9

34.9 33.826.8

16.612.7

RUEUZ PL SA BR TR

2.2

1.5 1.5 1.4

1.0

PLTR BR SA RU

15.6

11.99.9 9.7 9.7 9.4

RUEUZ SA TRBR PL

10.1

4.4 4.0 3.7 3.7 3.1

PL BRTRRU SA EUZ

111.7

82.170.5

62.4 57.847.1

EUZ SA BR PL TR RU

107.0

82.5

63.9 59.752.8 47.2

EUZ SA BRTR PL RU

Relatively low leverage ratio… …and contained NPL levels… … with strong profitability characteristics

Further growth potential in deposits… … feeding overall lending… … as well as retail lending growth potential

PL: Poland

RU: Russia

TR: Turkey

EUZ: Eurozone

SA: South Africa

BR: Brazil

6

Central Bank rates

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

May

’18

Oct

’17

Apr’

19

Aug’1

7

Dec

’17

Jun’1

7Ju

l’17

Sep

’17

Aug’1

8

Nov’1

7

Jan’1

8F

eb’1

8M

ar’1

8A

pr’

18

Jun’1

8Ju

l’18

Jul’

19

Sep

’18

Oct

’18

Nov’1

8

Jan’1

9D

ec’1

8

Feb

’19

Mar

’19

Aug’1

9

May

’19

Jun’1

9

Sep

’19

Oct

’19

Avg. funding rate

1 week repo

Late liquidity

O/N lending

O/N borrowing

Note: CBRT raised the average funding cost by 11.25% in 2018 in response to currency depreciation and rising inflation. After maintaining the policy rate steady

at 24% throughout 1H’19, CBRT reversed the tightening with three rate cuts of 10% in total, undertaken in July-October MPC meetings, thanks to

improving inflation outlook.

5

10

15

20

25

30

35

40

45

50

Sep

’18

Oct

’18

Aug’1

8

Mar

’18

Apr’

18

May

’18

Jun’1

8

Jul’

19

Jul’

18

Dec

’18

Nov’1

8

Jan’1

9

Feb

’19

Mar

’19

Apr’

19

May

’19

Jun’1

9

Aug’1

9

Sep

’19

Oct

’19

Tight monetary policy has helped to stabilize TRY against USD

3

4

5

6

7

Oct

’18

Apr’

18

Mar

’18

Sep

’18

Jun’1

8

Dec

’18

May

’18

Aug’1

9

Jul’

18

Aug’1

8

Nov’1

8

Jan’1

9

Feb

’19

Mar

’19

Oct

’19

Apr’

19

May

’19

Jul’

19

Jun’1

9

Sep

’19

Evidenced also by options implied volatility retreating back to pre-stress levels

Monetary policy eases as disinflation resumes

Mo

od

y’s

do

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BR

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QNB Finansbank and

QNB Group at a Glance

8

QNB Finansbank: 5th Largest Privately Owned Universal Bank(1)

% Owned by QNB Finansbank

İşbank İşbank İşbank İşbank Garanti İşbank

GarantiYapı

KrediGaranti Garanti İşbank

Yapı

Kredi

Yapı

KrediGaranti

Yapı

Kredi

Yapı

Kredi

Yapı

KrediGaranti

Akbank Akbank Akbank Akbank Akbank

Denizbank Akbank

Denizbank Denizbank Denizbank Denizbank Denizbank

TEB TEB TEB TEB TEB TEB

ING ING ING ING ING ING

Numbers of

Branches

Customer

Deposits

Retail

Loans(2)

CommercialInstallment

Loans

Total

Assets Net Loans

Bank only, 6M’19

Leasing and

Factoring

Information

Technology

Brokerage,

Fund Mgmt.

and Insurance

Co-operation

with Other

Banks

Consumer

Finance1st

2nd

3rd

4th

5th

6th

7th

8th

Note: All information in the presentation is based on BRSA bank only data unless stated otherwise(1) In terms of total assets, net loans, retail loans and customer deposits (2) Including overdraft

Source: BRSA bank only data; BAT

QNB Finansbank group structure

Financial highlights

QNB Finansbank market positioning

100

9100 100

100

100

100

99 10033

9M’19

QNB Finansbank BRSA bank only financials

TRY, bn

9M’19

Eop

Total assets 174.2

Net loans 103.6

Customer deposits 94.4

Shareholder's equity 15.5

Branches (#) 542

Active customers (mn) 5.6

Bank only employees (#) 12,290

49

9

QNB Finansbank covers Turkey through a diverse distribution network and

the market’s only “pure digital bank”

1.12 mn active mobile banking customers

Mobile banking

228k active internet banking customers

Internet banking

272 inbound agents

Call center

219 field service personnel

Field service

2,946 ATMs around

Turkey and reaches

~7,550 ATM’s

through new ATM

sharing program

952 inbound agents

451k active internet banking customers

ATMs

Call center

Internet banking

248k POS terminals

POS

52 outbound agents

Telesales

2.7 mn active mobile banking customers

Mobile banking

804 in-house personnel

Direct sales

Source: BRSA Finturk

542 branches

Covering 71 out of 81 cities of Turkey

10

2.2

2.9

Dec’15 Sep’19

3.5- 4.0

Next 3-5

years

8.1

9.1

7.3

8.0

3.7

5.0

2.6

3.1

2011 2015

6.9

14.4

7.5

10.5

1.2

4.7

2.74.2

2005 2010

One of Turkey’s top performers on the back of its flexible business model

(1) Among private banks operating in given year(2) Including overdraft(3) Excluding commercial auto and mortgage loans

Source: BAT; BRSA

Total Assets

Ranking in Private Banks(1)

Market share

%

Market share

%

Market share

%

Credit cards

Mortgage

GPL(2)

Retail deposits

Commercial

credit cards

Commercial

installment loans(3)

SME loans

Business demand

deposits

Corporate &

Commercial banking

27

6

35

20041987 2001

1987-2004: Fast growth behind

leadership in Corporate &

Commercial Banking

2005-2011: Retail banking boom

with market leading growth and

success

2012-2016: Business banking

growth with productivity and risk

focus

2016 beyond: Sustained success

in Retail and SME, while beating

the market in Corporate &

Commercial Banking

11

QNB ownership has provided a strong support to one of market’s leading performers

Shareholder

Structure

Ratings

Corporate

Information

Qatar National Bank (Q.P.S.C.)

%

99.88

Other

0.12

%

• Largest bank in Qatar by market cap, assets, loans, deposits

and profit

• Largest bank in MEA by total assets, loans, deposits and profit

• Operating in more than 31 countries around the world across 3

continents

• Serving a customer base of more than 24 million customers

with 29K staff, 1.1K+ locations and 4.3K+ ATMs

• Focused on traditional banking activities, complemented by

ancillary services (investment banking, brokerage, leasing,

factoring, asset management)

• Important partnerships in insurance with leading

international institutions (Sompo Japan for basic insurance

and Cigna for life insurance and private pensions)

Qatar Investment Authority

50.0

Private Sector

50.0

QNB Finansbank QNB (Q.P.S.C.)

Moody’s Fitch CI

Foreign Currency

Long-term DebtB1 B+ BB-

Foreign Currency

Short-term DebtNP B B

Moody’s Fitch S&P CI

Foreign Currency

Long-termAa3 A+ A AA-

Foreign Currency

Short-termP-1 F1 A-1 A1+

12

243.5

211.0

148.0 145.2127.6

174.3

99.6 94.173.7 70.3

177.3

125.8

99.087.3 86.3

QNB is the leading financial institution by all measures in the MEA region

(1) Standard Bank's results are as of December 2018, due to unavailability of June 2019 data

Source: Banks' June 2019 Press Release or Financial Statements, if available, Brand Finance Bank 500 2019, Bloomberg

2.03 2.02

1.72

1.46 1.38

5.0

4.0 3.9

2.92.5

49.5

41.738.1 37.9

26.0

Total Assets

USD bn, Jun’19(1)

Loans

USD bn, Jun’19(1)

Deposits

USD bn, Jun’19(1)

Net Profit

USD bn, Jun’19

Top MEA Banking Brands

USD bn, Dec’18

Top MEA Banks by Market Cap

USD bn, Dec’18

13

QNB ownership brings a strong geographic reach to QNB Finansbank

especially with important trade partners of Turkey

Top 40 trade

partners of Turkey

QNB presence

Vietnam

Egypt

India

China

Singapore

Indonesia

France

United Kingdom

Switzerland

UAE

Libya

Jordan

Iran(1)

Qatar

Tunisia

Yemen

Syria

Iraq

Kuwait

Lebanon

Bahrain

Oman

Palestine

South Sudan

Sudan

Algeria

Mauritania

Togo

Myanmar

Turkey

Middle East

Europe

Sub-Saharan Africa

Asia

North Africa

(1) Dormant

KSA

Financial Performance

15

RoE proved its resilience once againRobust profitability maintained in a challenging macro environment

Prudent lending strategy has paid off with relatively more resilient

NPL ratio trend

Capital strengthening initiatives have further boosted solvency

buffers, particularly for Tier 1

RoE

%

Net Profit

TRY, mn

NPL Ratio

%

CAR

%

8.0

12.714.3

18.1 17.5

2015 2016 2017 2018 9M’19

706

1,2031,603

2,410

1,7491,960

9M’192015 2016 2017 9M’182018

+12%

12.0 12.6 12.3 11.7 13.2

15.4

20182015 2016 2017 9M’19(2)

15.4 15.014.515.8

6.35.8

5.0

6.1

9M’192015 2016 20182017

6.3(1)

Strong profitability sustained by relatively more resilient asset quality than peers, while comfortable capital position maintained in a challenging backdrop

(1) Non-performing loan portfolio of TRY919 mn was sold for TRY88.2 mn in Q3’19.(2) Conversion of USD 525 mn subloan (USD 200 mn Basel II+USD 325 mn Basel III) into AT1 and USD 125 mn subloan into Basel III compliant Tier 2

contributed ~220 bps to Tier 1 and ~130 bps to CAR.

CAR

+51%CAGR

Tier1

16

Total Assets reached TRY 174bn with a YTD growth of 11%

(1) FX-indexed TRY loans are shown in FX assets

IEA

Total Assets

TRY, bn

TRY Assets

TRY, bn

FX Assets(1)

USD, bn11%

13%12%

15%

12%13%

13%

13%14%

7% 6%5%

9%7%

4% 6% 5% 5% 5%

62%

2016

65%

2017

59%

157.4

9M’19

Cash & banks

Securities

Loans

85.7

60%

125.9 174.2101.5

Other

Derivatives & related

66%

2015

13%

2018

+11%

60.9 67.380.8

96.6 103.0

20182015 2016 9M’19

6M’19

2017

+7%

8.5 9.711.8 11.6 12.6

20182015 2016 9M’192017

+9%

+21%

Tight loan demand conditions limited loan growth, partly mitigated by additional

investments in securities

Accelerating TRY lending in Q3 brought

YtD TRY assets growth to 7% levels,

..., while FX assets growth was driven by

investments in FX securities and FX

lending through committed project finance

facilities

CAGR

CAGR +11%CAGR

+15%CAGR

17

+6%+12%

34.940.3

55.464.5

70.6

2015 20172016 9M’192018

+9%

Business Loans

TRY, bnCAGR

Loan growth reached 10% on a YTD basis, helped by both Retail and Business loans

(1) Based on BRSA segment definition(2) Excluding commercial credit cards(3) FX-indexed TRY loans are shown in FX loans

Business

Banking

TRY Loans

FX Loans(3) 28%

72%

33%

67%

27%

73%

Performing Loans by Segment and Currency

TRY, bn

Retail Loans

TRY, bn

21.6 22.026.5

30.8 33.9

20172015 2016 2018 9M’19

+10%

25% 23% 22% 21% 20%

14%13% 11% 12% 12%

35%33% 35% 33% 31%

26%31% 32% 34% 37%

56.5

Credit cards(2)

9M’192015 2016 2017 2018

81.9

SME(1)

Corporate &

Commercial

Consumer

95.362.3 104.5

10%

Corporate & Commercial segment led loan growth in 2019 on the back of both TRY and FX

lendings, while both Retail and SME lending followed market growth trends

Pick-up in retail growth essentially driven

by GPLs and credit cards,

... while growth in Business stemmed from recovery in TRY loans as well as committed project finance facilities

+18%CAGR

24%

76%

+13%CAGR

% FX rate

adjusted

+21%

33%

67%

18

+12%

CAGRCAGR

Corporate & Commercial and Retail driven growth, on the back of pent-up

customer demand

Business banking

19.9 20.5

28.531.9 32.0

2015 2016 2017 9M’192018

0%

Retail banking

SME Loans(1)

TRY, bnCorporate & Commercial Loans

TRY, bn

General Purpose Loans(2)

TRY, bn

Credit Card Loans(3)

TRY, bn

Mortgage Loans

TRY, bn

9.0 9.112.2

14.8 16.7

20172015 2016 2018 9M’19

+13%

7.7 7.8 8.711.2

12.7

2017 9M’192015 2016 2018

+14%

5.0 5.1 5.64.8 4.5

2015 2016 9M’1920182017

-7%

Prudent approach and low customer

demand led to steady SME book...

... while decent growth in Corporate &

Commercial banking in line with strategic planSelective growth in Retail Loans...

...focusing on GPLs......and credit cards, both of which recorded

above-market growth

Redemptions continued in mortgage

portfolio, mostly in line with private peers

-3%+14%+18%CAGRCAGRCAGR

Retail Loans

TRY, bn

21.6 22.026.5

30.8 33.9

2015 2016 9M’192017 2018

+10%+13%CAGR

(1) Based on BRSA segment definition(2) Including overdraft loans(3) Solely represents credit cards by individuals

+14%+14%

% FX rate

adjusted

15.019.8

26.932.5

38.6

9M’192015 2016 2017 2018

+19%+29%

19

Well-managed asset quality with highest-in-class coverage ratios

(1) Including retail and business credit cards(2) Starting the onset of 2018, general provisions represent expected credit losses (ECL) on Stage I and Stage II Loans as per IFRS9

NPL Additions / Average Loans

%

NPL Additions / Average Loans by Segment

%

NPL Coverage

%

80 84 81 77 75

3435 35 44

38

116

9M’19(2)2015 2016

119

2017 2018

114121

1136.3

5.4

4.0

3.5

4.13.8

3.4

2.6

2.4

3.2

3.2

3.9

4.7

7.2 7.1

1.3

1.8

1.0

1.82.1

2015 2016 2017 2018 9M’19

3.3 3.3

3.0

3.7 3.6

201820172015 2016 9M’19

Stable NPL additions despite realization of

two highly-provisioned, large ticket

corporate & commercial files as NPL

Slight pick-up in NPL inflows for Retail and

Corporate & Commercial, while SME

started to stabilize with signs of

improvement

NPLs are well-covered through general and specific provisions

GP / NPL

SP / NPLSMECredit Cards(1)

Consumer Corp&Comm.

20

Migration of highly covered files to NPL led to a slight decrease in stage II

coverage, however still above peers’ average

Provision coverage ratio for Stage 1 exposures is well above our peers’,

while it slightly retreated following the macro parameter update in Q3

Despite dilution effect of NPL sale on coverage during Q3, prudent provisioning

maintained with Stage III coverage well above peers’

79,745 85,598 92,620 85,269 86,314 88,500 91,192

0.6% 0.7% 0.7% 0.6% 0.5% 0.6%

1.3%1.1% 1.2% 1.2% 1.3% 1.3%

1.0%

9M’193M’18 6M’18 9M’18 3M’1912M’18 6M’19

Tier 1 private banks’

coverage ratio(2)

Stage 1

loans (TRY, mn)

QNB Finansbank

coverage ratio

6,724 7,619 9,335 9,91612,949 13,178

10.3% 11.2% 12.7%10.1%

10.5% 11.0%

17.6% 17.9% 18.2%15.2% 13.6%

3M’19 6M’193M’18

14.8%(4)16.4%(3)

12M’186M’18 9M’18 9M’19

12,050 (4)

Tier 1 private banks’

coverage ratio(2)

QNB Finansbank

coverage ratio

Stage 2

loans (TRY, mn)

4,508 4,758 5,075 6,155 6,446 6,990 7,055

77.3%70.8%

64.9% 62.5% 62.5% 60.0%

78.5% 79.2% 78.8% 77.1% 78.6% 77.5% 74.5%

3M’193M’18 6M’196M’18 9M’18 9M’1912M’18

Tier 1 private banks’

coverage ratio(2)

QNB Finansbank

coverage ratio

Stage 3

loans (TRY, mn)

Prudent IFRS 9 staging with intact provisioning buffers

(1) Gross loans encompass the loans measured at FVTPL(2) Ratio computed by dividing the sum of provisions for the relevant loan stage of individual banks by the sum of the loan balances of the related stage (3) Decline in coverage ratio partly technical due to reclassification of both exposure and related provision on ex-Otas exposure from amortized cost to FVTPL(4) Restructure of a highly-collateralized file in Q1’19 led to a rise in Stage 2, a simultaneous dilution in Stage 2 coverage ratio and an increase in the share of restructured in Stage 2

Stage II composition shows that 76% of total Restructured and SICR

related balance is non-delinquent

22%

46%

32%

Days past due > 30 days

Restructured(4)

SICR

Loan balance = TRY 13.6bn

15% Precautionary

18% Quantitative

as a % of gross loans(1)

for the relevant period

7.4% 7.8% 8.7% 9.8% 11.5% 11.9% 11.8%

21

Securities portfolio reached TRY 26.7 bn, accounting for 15% of assets

Total Securities

TRY, bn

TRY Securities

TRY, bn

FX Securities

USD, bn

TRY Securities

FX Securities 43%

57%

49%

51%

30%

70%

42%

58%

42% 46% 46%58%

58% 54% 54%

39% 41%

0%

20162015

26.7

61%

0% 1%0%

2017

0%

2018(1) 9M’19

9.2

Trading

Available for sale

Held to maturity

12.9 15.5 21.4

+25%

35% 30% 39% 33% 32%

56% 55% 51% 53% 56%

14%

2018

9% 15%

2016

CPI

2015

10%

2017

12%

9M’19

Fixed

FRN

6.4 7.5 8.9 12.5 13.6

+9%

+22%+33%

Securities portfolio recorded an impressive 25% growth YtD to

compensate for tight loan demand88% of TRY securities are variable in nature

Higher FX government securities investments during tight loan

demand conditions

CAGRCAGR

(1) In line with IFRS 9 business model reassessment, there have been reclassification from AFS to HTM

20172015 9M’192016 2018

Fixed

1.0 1.5 1.7 1.7 2.3

+37%+27%CAGR

42%

58%

22

Well-diversified funding structure underpinned by solid deposit base

Total Liabilities

TRY, bn

TRY Liabilities

TRY, bn

FX Liabilities

USD, bn

2015 2016 20182017

53.9

9M’19

48.359.9

74.0 78.7

+6%

2015 2016 2017 9M’19

17.3

2018

12.9 13.515.9 16.9

+6%

48% 44% 43% 44%

9%9% 10%

10% 13%

20% 24% 28% 23%24%

6% 6%5% 5%

6% 6% 4% 8% 5%

11% 10% 10% 9% 9%

2017

101.5

9M’192015 2016

Demand deposits(1)

4%

46%

Equity

174.2

2018

Derivatives & related

125.9

Other liabilities

Borrowings

Time deposits(1)

85.7 157.4

+11%

Use of diversified funding sources while leveraging strong wholesale funding capabilitiesTRY liabilities supported by growing client funds

essentially via TRY bond issuances

Ongoing dollarization in customer deposits and utilization of long-term wholesale funding opportunities led to a rise in FX liabilities

+21% +14%CAGRCAGR

(1) Includes bank deposits

CAGR +7%

23

L/D ratio improves on the back of robust deposit expansion and mild loan growth

(1) FX deposits represent 39%, 40%, 47%, 46% and 52% of total customer deposits in 2015, 2016, 2017, 2018 and 9M’19, respectively (2) Including TL issued bonds, bank deposits & fiduciary deposits excluding CBRT swap transactions

FX customer deposits(1)

USD, bn

TRY customer deposits(incl TRY bonds issued)

TRY, bn

Customer demand deposits

TRY, bn, aop

Loan-to-deposit ratio(2)

%

29.1 32.4 37.646.9 49.0

2015 20172016 2018 9M’19

+5%

7.7 9.212.3

15.2

21.4

2015 2017 20182016 9M’19

+41%

6.3 5.9

8.1 7.48.7

2015 2016 2017 2018 9M’19

+19%

115 113 117107 101

2015 2016 2017 9M’192018

FX customer deposit growth in line with market trendsTRY customer deposits continued to grow in 2019

Sustained impressive growth in demand depositsSignificantly improving loan-to-deposit ratio thanks to robust

deposit expansion ahead of loan growth

+15%

+31%

+9%CAGR

CAGR

CAGR

24

Strong FX liquidity position and tighter loan demand reduce the need for additional

wholesale funding

Borrowings(1) by Type

TRY, bn, % of borrowings

% of liabilities

12.9%20.0%

13.2%

12.4%

49.6% 39.3%

24.3% 28.3%

2018 9M’19

Sub-debt

Bonds

issued

36.6

Funds

borrowed

Repo

42.5

(1) Non-deposit funding

6.9

9.6

3.0

4.9

2018

Wholesale funding is channelled towards lower cost repo

funding in line with creditors limit increases in that facilityComfortable remaining maturity profile of borrowings retained

9M’19

5.7

11.5

3.1

3.0

15%

11%

23%

4%5%

16%

13%

12%

Trade

finance

Multilaterals

Sub-debt

Securitization

Eurobond

TRY bonds

Syndication

Asset backed

funding

100% = TRY 34.0bn

1.7

#Avg. remaining

maturity (yrs)

3.1

3.7

8.0

8.3

0.3

0.4

0.1

Breakdown of borrowings except repo

24.423.3

25

CAR remained sound and well above required levels

Capital Adequacy

%

12.6 12.3 11.713.2

15.8(1)

9M’1920182016

15.4

2017

14.515.0

Internal capital generation’s contribution to CAR reached 128 bps YtD

Capital strengthening initiatives in Q2

reinforced capital buffers, particularly

for Tier1

Market

Risk

5 bps

131 bps

Capital

Strenghthening

Initiatives

128 bps

Net

Income

Contribution

Currency

Impact

Securities

MTM

impact

2018

CAR

15.4%

(13 bps) (2)

9M’19

CAR

(149 bps)

MTM

of

subsidiaries

(20 bps)

15.8% (1)

(31 bps)

Operational

Risk

(15 bps)

Credit

Risk

Tier 1

(1) Conversion of USD 525 mn subloan (USD 200 mn Basel II+USD 325 mn Basel III) into AT1 and USD 125 mn subloan into Basel III compliant Tier 2

contributed~220bps to Tier 1 and ~130 bps to CAR.(2) This impact mainly stemmed from MTM valuation of investments in publicly-traded subsidiaries, and eliminated at consolidated level

26

A structured approach to market and liquidity risk management

• TRY interest rate sensitivity is actively managed in the international swap market

• Hedge swap book stands at TRY 15.3bn as of 9M’19

• Net change in Economic Value / Equity is constantly monitored under several scenarios

• Regulatory IRRBB ratio is at 5.98% as opposed to 20% limit; indicating a conservative interest rate position

on the banking book

Focused ALM

leads to low

interest rate

sensitivity

Prudent

management of

liquidity risk

Low risk appetite

for trading risks

• Strong framework is in place to ensure sufficient short-term and long-term liquidity

• Total Regulatory Liquidity Coverage ratio is 136% as opposed to 100% limit, whereas FX Regulatory

Liquidity coverage ratio is 166% as opposed to 80% limit.

• Continuous monitoring and reporting are in place to support effective management in addition to contingency

plans for extreme situations

• Low trading risk appetite is reflected by the limit structure both on portfolio and product level

• Best-in-class measurement methodologies are in place with daily monitoring of all market risk metrics

(VaR, sensitivities, etc.) in addition to stress tests and scenario analysis

27

1.6

1.5 1.5 1.4

1.6

20162015 2017 2018 9M’19

3,1453,786

4,276

5,666

3,959 4,166

1,314

1,363

1,686

2,140

1,4912,007452

728

475

401

2016

287

351

Net interest

income(1)

2015

6,574

8,534

2017 9M’182018 9M’19

Trading &

other income

Fees and

commissions

5,601

4,810

6,2505,925

+11%

Focus on core banking income generation

Core

banking

income

Total Operating Income

TRY, mn

NIM after Swap

%

Fees / Assets

%

4.75.2

4.7 5.04.4

201820162015 2017 9M’19

% Core banking income

Operating income derived from core banking activities with strong YoY growth

Resilient NIM despite relatively higher cost

of funding and lower contribution from CPI

linkers

Improving fee generation thanks to

contribution from payment systems

(1) Including swap expenses

CAGR

+13%+21%

+21%

28

Easing cost of deposits improved spreads which are trending back to historical levels

(1) Blended of time and demand deposits(2) Adjusted for FX rate changes

Loan

yield

Blended

cost(1)

6.4 3.36.3 6.4LtD

spread

Time

deposit

cost

TRY Spread

%, quarterly

FX Spread(2)

%, quarterly

2.72.8 3.0

17.3 17.9

20.6

22.6 22.5 22.821.9

13.1 13.6

17.0

22.320.8

18.7

11.0 11.4

14.2

19.318.3 18.3

15.8

4Q’182Q’181Q’18 3Q’18 1Q’19

21.1

2Q’19 3Q’19

5.05.2

5.55.7

5.9 6.05.8

2.8 2.9

3.5

4.0

3.0

2.4 2.4

2.2 2.2

2.73.1

2.2

1.7 1.7

1Q’18 2Q’18 3Q’18 4Q’18 1Q’19 2Q’19 3Q’19

Loan

yield

Blended

cost(1)

Time

deposit

cost

TRY spreads benefited from sharp decline in deposit costs following

CBRT rate cuts

Upward trend in FX spreads supported with ample FX deposit

supply

2.8LtD

spread4.2 3.74.5 4.36.1 4.1

29

NIM slightly below long-term trend due to higher TRY funding cost, though on a

rising trend following the recent CBRT rate cut cycle

Cumulative NIM after Swap

bps

Adjustment on CPI expectations took its toll on NIM during Q3 NIM contracted on a YTD basis with higher TRY funding costs and

lower contribution from CPI linker portfolio

(1) CPI projection used in the valuation was revised as 11% level in Q3.

A 100 bps increase in CPI projection would contribute TRY 75 mn/yr to NII and 5 bps to NIM

Quarterly NIM after Swap

bps

475

522

468

503

2015 20172016 2018

436(1)

9M’19

13

3947

9

Loans

6

Q2’19

NIM

Customer

Deposits

Securities Q3’19

NIM

Net Other

Interest

Income

Swap

Expense

435

415 (1)

30

Sustained improving fee generation mainly supported by payment systems

YoY Change

Cumulative Net Fees and Commissions

TRY, mn

Fees / Total Income

%

27.3

24.3

27.025.1

30.5

2015 2016 2017 2018 9M’19

57%62%

20%15%

11% 11%

12% 13%

9M’199M’18

Insurance

Payment systems

2,007

Other commissions

Loans

1,491

35% YoY growth in fee generation driven by strong payment systems and value added

service revenues

Leading contribution from fees to total income

among peers

+46%

+33%

+43%

-1%

Fees / OPEX

%

48.0 48.7

56.8

65.670.8

20162015 20182017 9M’19

Higher fee generation and effective cost

containment led to Fee/OPEX improvement

+35%

31

Measures taken in credit risk management paid off across the board; CoR proved its resilience once again

(1) IFRS 9 standards with regard to provisions implemented starting in January 1, 2018

Total CoR breakdown, 9M’19

Bps Cost of Risk(1)

%

2.15 2.19

1.68

2.44

1.84

1.67

1.83

201720162015 2018 9M’19

Positive impact from macro parameters update largely offset by front-loaded

provisioning

Essentially stable credit portfolio related CoR in

challenging times

183 18419

33

Credit

portfolio

related CoR

Currency

impact

Macro

parameters

update

Front-loaded

provisioning

Other Risks

7

9M’19

Reported CoR

8

Credit Portfolio Related CoR

32

Diligent focus on cost containment has led to improving efficiency metrics

Cost / Income

%

OpEx / Assets

%

OpEx

TRY, mn

56.950.0 47.5

38.243.1

201820172015 2016 9M’19

3.33.0

2.62.2 2.3

20162015 20182017 9M’19

...maintaining low cost/income ratio.

Economies of scale improvement has been maintained

Operating expense growth sustained below average inflation...

Relatively higher efficiency levels vis a vis historical performance

reflected in ROE performance

0%

5%

10%

15%

20%

35% 40% 45% 50% 55% 60%

2017

C/I

ROE

2015

2016

2018 9M’19

+6%

2,737 2,800 2,9673,263

2,4072,834

20182015 20172016 9M’18 9M’19

+18%

CAGR

33

Key financial ratios

Bank only figures 2015 2016 2017 2018(1) 9M’18(1) 9M’19(1) ∆YoY

RoAE 8.0% 12.7% 14.3% 18.1% 17.9% 17.5% -0.4pps

RoAA 0.9% 1.3% 1.4% 1.6% 1.6% 1.6% +0.0pps

Cost / Income 56.9% 50.0% 47.5% 38.2% 40.6% 43.1% +2.5pps

NIM after swap expenses 4.7% 5.2% 4.7% 5.0% 4.7% 4.4% -0.4pps

Loans / Deposits(2) 115.1% 113.2% 116.8% 106.8% 111.4% 101.3% -10.1pps

LCR 88.5% 86.2% 102.7% 117.5% 136.4% 128.1% -8.3pps

NPL Ratio 6.3% 5.8% 5.0% 6.1% 4.7% 6.3% +1.6pps

Coverage(3) 114.6% 118.6% 116.3% 120.7% 133.8% 112.9%(4) -21pps

Cost of Risk 2.2% 2.2% 1.7% 2.4% 2.0% 1.9% -0.1pps

CAR 15.4% 14.5% 15.0% 15.4% 16.0% 15.8% -0.2pps

Tier I Ratio 12.0% 12.6% 12.3% 11.7% 11.7% 13.2% +1.5pps

Liability/Equity 9.5x 10.0x 10.4x 10.8x 12.9x 11.3x -1.7x

Profitability

Liquidity

Asset quality

Solvency

(1) IFRS 9 standards implemented as of January 1, 2018(2) Including TL issued bonds, bank deposits & fiduciary deposits excluding CBRT swap transactions(3) Specific and general provisions replaced by ECL methodology with IFRS 9 transition as of January 1, 2018(4) NPL sale of a fully-provisioned TRY919 mn portfolio led to a dilution in 9M’19

34

Key strategies in 2019 and going forward

• Core banking, i.e., minimum market risk

• Prudent credit risk management

• High liquidity at all times

• Maintain above market growth in Corporate & Commercial seeking to achieve fair market share in the long-term

• Leverage digital transformation investments in SME segment for new client gathering as well as increasing service

coverage for existing clients in line with our target of becoming client’s ‘Main Bank’

• Continue targeting above-market growth in Retail via general purpose loans and renewed emphasis on credit cards with

‘high card spend’

• Continued emphasis on building a stable deposit base through new channels, offerings to untapped segments and customer

groups, stronger loyalty (ie: Turkish Airlines cobranded program) and digital offerings (Digital Affluent Model, enpara.com)

• Leverage wholesale funding opportunities presented by strong shareholder structure

• Focus on fee generation and operating expenses control as well as continuing improvement on cost of risk front

Appendix

36

Balance SheetIncome Statement

QNB Finansbank BRSA Bank-Only Summary Financials(1)

TRY, mn 2015 2016 2017 2018 9M’19 ∆YtD

Cash & Banks(2) 10,313 14,925 17,291 19,808 23,754 20%

Securities 9,197 12,950 15,543 21,368 26,702 25%

Net Loans 57,273 62,923 82,683 94,018 103,590 10%

Fixed Asset and

Investments(3)2,283 2,912 3,168 4,558 4,786 5%

Other Assets 6,661 7,792 7,172 17,664 15,359 -13%

Total Assets 85,727 101,503 125,857 157,416 174,192 11%

Deposits 48,566 53,939 67,032 87,090 99,147 14%

Customer Deposits 47,009 51,966 65,297 83,413 94,375 13%

Bank Deposits 1,557 1,973 1,735 3,678 4,772 30%

Borrowings 17,278 24,821 34,798 36,602 42,472 16%

Bonds Issued 4,336 4,312 7,914 8,904 12,031 35%

Funds Borrowed 5,640 10,758 16,883 18,166 16,676 -8%

Sub-debt 2,662 3,236 3,511 4,816 5,285 10%

Repo 4,639 6,515 6,490 4,715 8,480 80%

Other 10,860 12,617 11,872 19,152 17,098 -11%

Equity 9,024 10,126 12,155 14,572 15,475 6%

Total Liabilities

& Equity 85,727 101,503 125,857 157,416 174,192 11%

(1) IFRS 9 standards implemented as of January 1, 2018, whereas the previous year figures have not been restated accordingly(2) Includes CBRT, banks, interbank, other financial institutions(3) Including subsidiaries

TRY, mn 2015 2016 2017 2018 9M’18 9M’19∆YoY

Net Interest Income

(After Swap

Expenses)

3,145 3,786 4,276 5,666 3,959 4,166 5%

Net Fees &

Commissions

Income

1,314 1,363 1,686 2,140 1,491 2,007 35%

Trading & Other

Income351 452 287 728 475 401 -15%

Total Operating

Income 4,810 5,600 6,250 8,534 5,925 6,574 11%

Operating Expenses (2,737) (2,800)(2,967) (3,263) (2,407) (2,834) 18%

Net Operating

Income 2,073 2,800 3,282 5,270 3,519 3,740 6%

Provisions (1,170) (1,316)(1,233) (2,212) (1,323) (1,410) 7%

Profit Before Tax 903 1,484 2,049 3,059 2,196 2,330 6%

Tax Expenses (197) (280) (446) (649) (447) (370) -17%

Profit After Tax 706 1,203 1,603 2,410 1,749 1,960 12%

37

QNB Finansbank BRSA Consolidated Summary Financials(1)

TRY, mn 2015 2016 2017 2018 9M’18 9M’19 ∆YoY

Net Interest Income

(After Swap

Expenses)

3,272 3,962 4,441 5,861 4,143 4,335 5%

Net Fees &

Commissions

Income

1,387 1,445 1,783 2,252 1,584 2,097 32%

Trading & Other

Income307 455 413 920 584 579 -1%

Total Operating

Income 4,966 5,862 6,636 9,033 6,310 7,011 11%

Operating Expenses (2,874) (2,938) (3,126) (3,445) (2,549) (2,998) 18%

Net Operating

Income 2,092 2,923 3,510 5,588 3,761 4,012 7%

Provisions (1,207) (1,390) (1,269) (2,317) (1,364) (1,450) 6%

Profit Before Tax 884 1,533 2,241 3,271 2,397 2,562 7%

Tax Expenses (204) (295) (469) (698) (496) (421) -15%

Profit After Tax 680 1,238 1,772 2,573 1,901 2,141 13%

TRY, mn 2015 2016 2017 2018 9M’19 ∆YtD

Cash & Banks(2) 10,403 15,084 17,424 20,226 24,179 20%

Securities 9,254 12,983 15,608 21,387 26,744 25%

Net Loans(3) 58,865 65,452 88,286 100,377 108,874 8%

Fixed Assets &

Investments3,467 2,243 2,427 3,467 3,874 12%

Other Assets 6,060 8,564 7,450 18,045 15,844 -12%

Total Assets 88,049 104,326 131,195 163,500 179,516 10%

Deposits 48,311 53,865 66,934 86,826 99,043 14%

Customer Deposits 46,755 51,892 65,198 83,149 94,271 13%

Bank Deposits 1,557 1,973 1,735 3,678 4,772 30%

Borrowings 19,364 27,351 39,530 42,552 47,180 11%

Bonds Issued 5,827 6,332 10,398 11,850 13,293 12%

Funds Borrowed 6,066 11,164 18,622 20,552 19,916 -3%

Sub-debt 2,662 3,236 3,511 4,816 5,285 10%

Repo 4,809 6,620 7,000 5,334 8,686 63%

Other 10,968 12,806 12,302 19,518 17,419 -11%

Equity 9,405 10,304 12,428 14,603 15,849 9%

Total Liability &

Equity88,049 104,326 131,195 163,500 179,516 10%

Balance SheetIncome Statement

(1) IFRS 9 standards implemented as of January 1, 2018, whereas the previous year figures have not been restated accordingly(2) Includes CBRT, banks, interbank, other financial institutions(3) Including Leasing & Factoring receivables

38

Name Position Background

Dr. Ömer A. ArasChairman and QNB Finansbank

Group CEO

Founding member of Finansbank

Former CEO of Finansbank for 6 years

Sinan Şahinbaş Vice ChairmanFormer CEO of Finansbank for 7 years

Previously worked at Treasury, Corp. Banking and Risk Mgmt. departments of Finansbank

Yousef Mahmoud H N Al-

NeamaMember of the BoD

Acting Executive General Manager - Acting Group Chief Business Officer

Previously worked at Group Corp., Institutional Banking & International Banking of QNB

and Doha Bank

Adel Ali M A Al-Malki Member of the BoDGeneral Manager - Group Information Technology

Previously worked at Development and User Services, E-Business & System Analyst of QNB

Ramzi Talat A MariMember of the BoD and

Member of the Audit Committee

QNB Group Chief Financial Officer

Holds board membership at various QNB subsidiaries in Qatar, Egypt and Jordan

Noor Mohd J. A. Al-NaimiMember of the BoD and

Member of the Audit Committee

QNB General Manager Group Treasury

Assistant General Manager

Executive Manager

Holds board membership at QNB AlAhli S.A.E

Fatma A Al-Suwaidi Member of the BoDQNB Group Chief Risk Officer

Holds board membership at various QNB subsidiaries in Tunisia and UAE

Ali Teoman KermanMember of the BoD and

Chairman of the Audit Committee

Former Vice Under-Secretary of Treasury

Former Vice President of BRSA

Former Board Member of SDIF

Board Member at Bahçeşehir University Graduate School of Business

Dr. Osman Reha Yolalan Member of the BoD

Current Vice President of Corporate Affairs at Tekfen Holding

Former CEO of Yapı Kredi

Part-time Professor at various universities

Durmuş Ali KuzuMember of the BoD and

Member of the Audit Committee

Former Vice President of BRSA

Experience at Vakıfbank, Emlakbank, Treasury, Public Oversight Institution

Temel GüzeloğluMember of the BoD and

QNB Finansbank CEO

Former EVP of Retail Banking and Strategy

Experience at Unilever, Citibank, McKinsey & Co.

Board of Directors

39

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and statements, expressed, implied or contained herein, for any omission from the Information or for any other

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